Major Moderators Influencing the Relationships of Service Quality, Customer Satisfaction and Customer Loyalty

Hyung Seok Lee

Abstract

This study examines some major variables moderating the relationships of service quality, customer satisfaction, and customer loyalty in mobile phone services. The study employed statistical analyses, such as reliability analysis, factor analysis, and hierarchical regression analysis. The results of the study reveal that service quality and customer satisfaction positively affect customer loyalty. In addition, service quality positively influences customer satisfaction. Hence, customers with high perceived service quality and satisfaction also have strong loyalty. Furthermore, the study verifies the fact that moderating variables positively influence the relationships among the aforementioned factors. Among customers with a high level of perceived value, the effect of service quality on customer satisfaction increases. In addition, when customers’ perception of reasonable price increases, the impact of service quality on customer satisfaction increases as well. Finally, the study shows that as perceived switching cost increases, the relationship between satisfaction and customer loyalty strengthens.

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